Canadian REIT Wants to Consider Offer

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A Toronto real estate investment trust specializing in senior residences is asking a Canadian court to rule on whether it can consider a $1.2 billion buyout offer from Long Beach-based Health Care Property Investors Inc.

The ruling is sought because the Toronto company, Sunrise Senior Living Real Estate Investment Trust, has an offer pending from another REIT.


Sunrise said on Monday that it filed a lawsuit in Ontario Superior Court of Justice to determine whether it could enter into a memorandum of understanding with Health Care Property.


Health Care’s offer represents a 20 percent premium to an offer Sunrise received from Ventas Inc., a Louisville, Ky., REIT. At the time Ventas announced its plans to acquire Sunrise, the companies said their deal was valued at $1.8 billion, but about half of that amount included the assumption of debt.


The Sunrise REIT was formed by the McLean, Va.-based management company Sunrise Senior Living Inc. Ventas has an agreement with Sunrise, which is a minority joint venture partner in 56 of the properties, for right of first offer additional properties developed by Sunrise Senior Living in Canada and limited rights to buy certain U.S. properties.


Health Care Property acquired some Sunrise properties in its purchase of CNL Retirement Properties last year. Ventas maintains that Health Care Property cannot negotiate with Sunrise under terms of Ventas’ purchase agreement with Sunrise.

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